Question
You are considering the following two mutually exclusive projects that will not be repeated. The required rate of return is 11.25% for project A and
You are considering the following two mutually exclusive projects that will not be repeated. The required rate of return is 11.25% for project A and 11.65% for project B. Which project given cash flow information below should you accept and why? Year Project A Project B 0 -$48,000 -$140,900 1 18,400 69,700 2 31,300 92,900 3 11,700 9,000
Group of answer choices
Neither project is acceptable
You should accept both projects since both of their PIs are greater than 1
You should only accept project B since it has the higher NPV
You should accept both projects since both of their NPVs are positive
You should accept project A since it has the higher NPV
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